Strategic Plan Outline - Email Marketing for Small Businesses

By Douglas Bradley,2014-05-17 01:02
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Template: Company Situation Analysis. Form: SWOT Analysis Checklist. 1. Internal Strengths and Weaknesses. a. Marketing. b. Financial and Accounting

    Strategic Plan Outline

    I. Executive Summary

    A one- to three-page synopsis of the plan providing highlights of the current situation,

    objectives, strategies, principal actions programs, and financial expectations.

    II. Company Mission

    The mission of a company is the unique purpose that sets it apart from other companies

    of its type and identifies the scope of its operations. The mission describes the company’s

    product, market, and technological areas of emphasis in a way that reflects the values

    and priorities of the strategic decision makers. A. Define the core business

    1. Basic product or service

    2. Primary market

    3. Principal technology for production or delivery

    III. Company Profile

    The company profile depicts the quantity and quality of the company’s financial, human,

    and physical resources. It also assesses the strengths and weaknesses of the company’s

    management and organizational structure. Finally, it contrasts the company’s past

    successes and traditional concerns with the company’s current capabilities in an attempt

    to identify the company’s future capabilities. A. SWOT Analysis

    Template: Company Situation Analysis

    Form: SWOT Analysis Checklist

    1. Internal Strengths and Weaknesses

    a. Marketing

    b. Financial and Accounting

    (1) Ratio analysis

     Templates: Ratios

     Comparative Ratios

    (2) Sources and uses of funds

     Templates: Calculating the Cash Budget


     Cash Flows Working Paper: Direct Method

     Cash Flows Working Paper: Indirect Method

    c. Production, Operations, Technical

    d. Human Resources

    e. Quality Management

    f. Information Systems

    g. Organization and General Management

    2. External Opportunities

    a. Serve additional customer groups or expand into new markets or


    b. Expand product line

    c. Transfer skills to new products or businesses

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    Copyright The McGraw-Hill Companies. All rights reserved.

    d. Integration

    (1) Forward

    (2) Backward

    e. Foreign markets

    f. Emerging new technologies

    3. External Threats

    a. Low barriers to entry

    b. Availability of substitute products or services

    c. Slower market growth

    d. Costly regulatory requirements

    e. Growing bargaining power of customers or supplies

    f. Changing buyer needs and tastes B. Strategic Cost and Price Analysis

    1. Value chain approach: Primary activities

     Template: Value chain activities and cost

    a. Inbound logistics

    b. Operations

    c. Outbound logistics

    d. Sales and Marketing

    e. Service

    2. Value chain approach: Support activities

    a. Procurement

    b. Technology

    c. Human resources

    d. Infrastructure of the firm

    C. Current Competitive Position

     Form: Signs of Strengths and Weaknesses in a Company’s Competitive


     Templates: Company Situation Analysis

     Competitive Strength Assessment

    1. Comparison with past performance

    2. Stage of industry evolution

    3. Comparison with competition

     Form: Categorizing the Objectives and Strategies of Competitors

    4. Comparison with success factors in the industry

     Form: Types of Key Success Factors

    IV. External Environment

    A firm’s external environment consists of all the conditions and forces that affect its

    strategic options but are typically beyond its control.

    A. Remote environment

    1. Economic

    2. Social/Cultural

    3. Political/Regulatory

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    Copyright The McGraw-Hill Companies. All rights reserved.

    4. Technological

    5. Ecological

    B. Industry analysis

    1. Industry attractiveness analysis

    Template: Industry Attractiveness Factors

    a. Market factors:

    (1) Size

    (2) Growth

    (3) Cyclicity

    (4) Seasonality

    b. Industry factors:

    (1) Capacity

    (2) New product entry prospects

    (3) Rivalry

    (4) Power of suppliers

    (5) Power of buyers

    (6) Threat of substitutes

    C. Operating environment

    1. Driving forces

    a. Changes in the long-term industry growth rate

    b. Changes in who buys the product and how they use it

    c. Product innovation

    d. Technological change

    e. Marketing innovation

    f. Entry or exit of major firms

    g. Diffusion of technical know-how

    h. Increasing globalization of the industry

    I. Changes in cost and efficiency

    j. Emerging buyer preferences for differentiated products instead

    of a commodity product

    k. Regulatory influences and government policy changes

    l. Changing societal concerns, attitudes and lifestyles

    m. Reductions in uncertainty and business risks

    2. Strengths and Weaknesses of Competitors

    3. Customer Profiles

    4. Role of suppliers

V. Objectives

    Setting objectives converts the strategic vision and directional course into target

    outcomes and performance milestones.

    A. Long-term

    B. Short-term

    C. Financial

    1. Faster revenue growth?

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    2. Faster earnings growth?

    3. Higher dividends?

    4. Wider profit margins?

    5. Higher returns on invested capital?

    6. Stronger bond and credit ratings?

    7. Bigger cash flows?

    8. A rising stock price?

    9. Recognition as a “blue chip” company?

    10. A more diversified revenue base?

    11. Stable earnings during recessionary periods? D. Strategic

    1. A bigger market share?

    2. A higher, more secure industry rank?

    3. Higher product quality?

    4. Lower costs relative to key competitors?

    5. Broader or more attractive product line?

    6. A stronger reputation with customers?

    7. Superior customer service?

    8. Recognition as a leader in technology and/or product innovation?

    9. Increased ability to compete in international markets?

    10. Expanded growth opportunities?

    11. Total customer satisfaction?

    VI. Grand (Organizational or Business) Strategy

     Form: Matching Strategy to the Situation

    An articulation of the formal strategy based on the analysis preceding this step. The

    grand strategy identifies the overall goals of the organization.

    A. Concentration (increasing use of existing products in present markets)

    B. Market development (existing products in new markets)

    C. Product development (new products for present markets)

    D. Innovation

    E. Horizontal Integration

    F. Vertical Integration

    G. Concentric Diversification

    H. Conglomerate Diversification

    I. Turnaround

    J. Divestiture

    K. Liquidation

    L. Joint Ventures

    M. Strategic Alliances

    VII. Functional Strategies

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    Copyright The McGraw-Hill Companies. All rights reserved.

Although this may also be a part of the “Grand Strategy,” it is critical that the

    organization’s overall strategy be used a framework within which each division or

    business function sets its own strategic plan of action.

    A. Production/Operations

    1. Manufacturing

    2. Materials

    3. Capital

    B. Marketing

    1. Advertising

    2. Selling

    C. Finance and Accounting

    1. Cash flow

    2. Capital

    D. Research and Development

    E. Human Resource Management

    VIII. Implementing the Strategy

    Now that strategies have been defined for the organization as a whole and for the

    individual divisions or functions, a plan for implementing the strategy needs to be


    A. Build a capable corporation

    B. Policies and procedures to support the strategy

    C. Support systems

    D. Strategy-supporting reward systems

    E. Strategy-supporting corporate culture

    F. Strategic leadership

    IX. Control and Evaluation

    An implemented strategy must be monitored to determine the extent to which its

    objectives are achieved. A. Strategic controls

    1. Monitor assumptions and predictions

    2. Monitor implementation

    3. Strategic surveillance of internal and external environments

    B. Operational controls

    1. Budgets

    a. Profit and loss

     Templates: Cost, Volume and Profits

     Multiple-step Income Statement For a Corporation

     Work sheet and Financial Statements for a

     Manufacturing Corporation

    b. Capital budgets

     Templates: Master Budgets

    c. Cash flow

     Templates: Calculating the Cash Budget

     Page 5

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    Copyright The McGraw-Hill Companies. All rights reserved.


     Cash Flows Working Paper: Direct Method

     Cash Flows Working Paper: Indirect Method 2. Schedules

    3. Key success factors

     Form: Types of Key Success Factors

     Template: Competitive Strength Assessment

     Page 6

Used by permission of the McGraw-Hill Companies.

    Copyright The McGraw-Hill Companies. All rights reserved.

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